MercadoLibre: Looks Better Than Amazon Based On Its Growth

Summary

• As the Latam giant offering e-commerce, fintech, logistics, and advertising services all under one roof, it is no wonder that MELI commands leading mind-share in its markets.
• The synergistic effect from the sum of its parts may further drive cost optimization, while growing consumer adoption and its top/bottom lines ahead.
• Based on our conservative estimates, MELI may record FY2025 revenues of $18.5B and EPS of $26.50, suggesting a sustained CAGR of ~20% and ~40%, respectively.
• Therefore, we believe MELI stock is still a buy at these levels, given the attractive upside potential to our aggressive price target of $1,860.

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There Is Much More To MercadoLibre Than Meets The Eye

The MercadoLibre (NASDAQ:MELI) stock has recorded a massive rally of 93.7% since its June 2022 bottom, further sustained by its double-beat FQ4'22 results

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, MELI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.